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Published at Thursday, March 28th, 2019 - 10:05:05 AM. Type of airline. By Amet Franke.

As in many mature industries consolidation is a trend. Airline groupings may consist of limited bilateral partnerships long-term multi-faceted alliances between carriers equity arrangements mergers or takeovers. Since governments often restrict ownership and merger between companies in different countries most consolidation takes place within a country. In the U.S. over 200 airlines have merged been taken over or gone out of business since deregulation in 1978. Many international airline managers are lobbying their governments to permit greater consolidation to achieve higher economy and efficiency.

Congress passed the Air Transportation Safety and System Stabilization Act (P.L. 107-42) in response to a severe liquidity crisis facing the already-troubled airline industry in the aftermath of the September 11th terrorist attacks. Through the ATSB Congress sought to provide cash infusions to carriers for both the cost of the four-day federal shutdown of the airlines and the incremental losses incurred through December 31 2001 as a result of the terrorist attacks. This resulted in the first government bailout of the 21st century. 43 Between 2000 and 2005 US airlines lost $30 billion with wage cuts of over $15 billion and 100 000 employees laid off. 44



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